House Republican Press Release

May 30, 2007

Press Office: 860-240-8700

 Greenwich Delegation: Votes “No” to Raise Greenwich Taxes

“Tax Hikes Unfairly Penalize Greenwich”

The tax package adopted by the Democrats in the House of Representatives today increases the top income tax rate from 5 to 6.5%, slows economic growth, makes it more difficult to attract new employers to Connecticut, and means fewer new jobs State Representatives Livvy R. Floren (R-149^th District), Lile R. Gibbons (R-150^th District) and Claudia “Dolly” Powers (R- 151^st District) said.

“I am shocked by this billion dollar tax increase,” Rep. Gibbons said. “Already shouldering the heaviest tax load of any state in the country, our citizens will face even higher taxes, when we have an enormous surplus.”

Additionally, the Democrat tax package punishes the middle class by eliminating the clothing exemption on the purchase of clothes and shoes costing $50 or less and adds a tax on internet purchases.  

In addition to changes in the income tax, the top estate tax rate will go from 16% to 20%. The increase is offered as the price for eliminating the much-criticized “cliff effect” which makes the base rate apply from the first dollar once the $2,000,000 threshold is crossed, “This is a case of fairness being held for ransom,” Rep. Floren commented.

In voting ‘no’ on the record tax increase, Rep. Powers added, “Greenwich citizens will pay far more than they will ever receive. Connecticut residents already shoulder one of the heaviest tax burdens in the country. If the state legislature approves a budget along with this tax package without any significant spending cuts, the tax increases that will come with it will be a drag on our state’s economy, hurt our efforts to make Connecticut more attractive to out of state companies, and mean fewer new jobs.”